A New Method for the Price Determination of the Reactive Power Supply

This paper addresses the development of an accurate model for the pricing of reactive power supply as an ancillary service. Reactive power supply is one of the most important ancillary services in the field of transmission systems security. The present work is focused on building a reactive power market at which the distributors can also take part in injecting reactive power at the connected HV/MV nodes. The authors have studied the particular case of the reactive power supplied by sub-transmission or distribution networks, connected to the nodes of the transmission system. The aim of this work is to establish a reactive power price by crossing demand and offer curves